Saturday, December 20th2.0°C
24563
23827

Canadians taking on more debt, but delinquencies are down, Equifax says

TORONTO - Credit monitoring agency Equifax says Canadians racked up more debt in the latest quarter, driven by mortgages and higher instalment loans.

Data compiled for the second quarter shows that overall consumer debt, which includes mortgages, grew 7.2 per cent to $1.45 trillion from $1.35 trillion a year ago.

Debt also grew 1.8 per cent from the first quarter.

However, the rate of delinquencies fell to its lowest level since the recession began to unfold five years ago.

The national delinquency rate, which tracks bills overdue by 90 days or more, fell by 2.8 per cent, while consumer bankruptcies dropped by five per cent compared with the same time last year.

On average, Equifax says Canadians held $20,759 in debt without factoring in mortgages.

Albertans are the leaders for new credit demands, the report says, with requests rising for five consecutive quarters.

Equifax says instalment loans — or scheduled payments — increased 10.8 per cent while mortgages grew 9.2 per cent. The credit card sector was up 4.4 per cent over the same time last year.

"Demand for new credit is up, but has slowed significantly versus the first quarter when we saw a spike in credit card activity," says Regina Malina, senior director of decision insights for Equifax Canada.

"Credit card balances of new cardholders continue to increase, while credit limits and new card issuance have slowed."

During the first quarter, the credit monitoring agency noted that more new credit cards were being issued, but with consumers carrying smaller balances.

Malina says the slower increase of demand may be an indication that credit card issuers are starting to wrap up recent promotions to sign new cardholders.

The Canadian Press


Read more Business News

23041


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
23744


24304

FEATURED Property
2154098#106 456 McPhee Street
3 bedrooms 3 baths
$324,850
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_








Member of BC Press Council


24604